HSBC has reduced its U.S. debt capital markets team by approximately 10%, per Bloomberg News, citing internal sources. The move follows a broader restructuring plan initiated last year under CEO Georges Elhedery, aiming to trim $1.8 billion in costs through workforce reductions and operational streamlining. At least six New York-based employees, including one managing director, two directors, two associates, and one analyst, were laid off Thursday, with identities withheld for confidentiality.

The layoffs align with Elhedery’s strategy to simplify management layers and prioritize efficiency. Since assuming leadership in 2024, the bank has merged its commercial and investment banking divisions and restructured UK and Hong Kong operations into independent units. Additionally, HSBC has scaled back mergers and acquisitions (M&A) and equity capital markets activities in the UK, Europe, and the U.S., shifting focus to Asia and the Middle East.

This workforce reduction underscores HSBC’s pivot to leaner operations amid competitive pressures in global capital markets. The cuts reflect a broader industry trend of banks recalibrating resources to adapt to shifting demand and regulatory landscapes. Analysts suggest the move may signal reduced capacity in U.S. debt financing but could strengthen the bank’s regional specialization.

HSBC’s restructuring highlights the challenges of balancing cost discipline with maintaining market presence. While the firm has not disclosed the exact number of remaining team members, the reduction marks a significant step in its transformation under Elhedery’s leadership.